Microsoft’s Latest Form 8-K Filing Details The Three New Reportable Segments

Few months back, Microsoft announced a change in organizational structure as part of its transformation in the mobile-first, cloud-first world. Few days back, Microsoft announced that it will report its financial performance based on the three new reportable segments described below, and analyze operating income as the measure of segment profitability. The three segments are: Productivity and Business Processes, Intelligent Cloud and More Personal Computing. Microsoft has detailed these Reportable Segments in their latest Form 8-K filing. Read it below.

Productivity and Business Processes

Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:

• Office Commercial, including volume licensing and subscriptions to Office 365 Commercial, for products and services such as Microsoft Office, Exchange, SharePoint, and Skype for Business, and related Client Access Licenses (“CALs”).

• Office Consumer, including Office sold through retail or through an Office 365 Consumer subscription, and revenue from Outlook.com, OneDrive, and consumer Skype services.

Our More Personal Computing segment consists of products and services geared towards harmonizing the interests of end users, developers, and IT professionals across screens of all sizes. This segment primarily comprises: